COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS

3 Months Ended

Mar. 31, 2021

Contractors [Abstract]

COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS

COSTS AND ESTIMATED PROFITS ON UNCOMPLETED CONTRACTS

Under our customized pump production contracts in our IPS segment, amounts are billed as work progresses in accordance with agreed-upon contractual terms, upon various measures of performance, including achievement of certain milestones, completion of specified units, or completion of a contract. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. Our contract assets are presented as “Cost and estimated profits in excess of billings” on our condensed consolidated balance sheets. However, we sometimes receive advances or deposits from our customers before revenue is recognized, resulting in contract liabilities that are presented as “Billings in excess of costs and estimated profits” on our condensed consolidated balance sheets.

Costs and estimated profits on uncompleted contracts and related amounts billed were as follows (in thousands):

	March 31, 2021		December 31, 2020
Costs incurred on uncompleted contracts	$	29,426	$	36,969
Estimated profits, thereon	5,259		6,711
Total	34,685		43,680
Less: billings to date	26,217		29,315
Net	$	8,468	$	14,365

Such amounts were included in the accompanying condensed Consolidated Balance Sheets for March 31, 2021 and December 31, 2020 under the following captions (in thousands):

	March 31, 2021		December 31, 2020
Costs and estimated profits in excess of billings	$	14,415	$	18,459
Billings in excess of costs and estimated profits	(5,950)		(4,061)
Translation adjustment	3		(33)
Net	$	8,468	$	14,365

During the three months ended March 31, 2021, $0.9 million of the balances that were previously classified as contract liabilities at the beginning of the period shipped. Contract assets and liability changes were primarily due to normal activity and timing differences between our performance and customer payments.